Nissan Announces Record Results For FY 2000

Tokyo (May 17) - Nissan Motor
Company announced today financial results for fiscal year
ended March 31, 2001. For the first full-year of the Nissan
Revival Plan (NRP), the company reported a consolidated net
profit after tax of 331.1 billion yen (US$2.7 billion, Euro
3.0 billion).

“Nissan is back. The Nissan Revival Plan
has produced the best financial performance in the company’s
history as far as we can reliably trace it,” said Carlos
Ghosn, president of Nissan Motor Company. “We have more
than tripled operating profits and cut debt to the lowest
level in fifteen years. The NRP is fully engaged and the
people at Nissan are stimulated and driven by the results
they have delivered.”

Consolidated net automotive debt
declined by 396 billion yen (US$3.2 billion, Euro 3.6
billion) throughout the year, and for the first time in 15
years came in below 1 trillion yen at 953 billion yen
(US$7.7 billion, Euro 8.7 billion).

Nissan reported
consolidated net sales of 6,090 billion yen (US$49.1
billion, Euro 55.9 billion), up 1.9% from last fiscal year
and more than tripling consolidated operating profit from
82.6 billion yen last year to 290.3 billion yen (US$2.3
billion, Euro 2.7 billion). The company’s consolidated
operating margin came to 4.75% of net sales, higher than the
NRP commitment of 4.50% for fiscal year 2002, two years in
advance.

“We are not ready to
cast off the mindset of an underdog. We have moved from the
emergency room to the recovery room,” said Ghosn. “We are
as passionate about our current achievements as we are about
our future goals.”

Ghosn also unveiled Nissan’s guide
for the post NRP period from fiscal years 2003 through 2005.
The guide targets a global volume increase of 1 million
units, the top level of profitability in the industry and
the elimination of Nissan’s net automotive
debt.

Highlights of Consolidated Financial Results:

Unit
salesWhen Nissan announced NRP, the company indicated it
had not factored in growth, however, during fiscal year
2000, Nissan global unit sales increased 4.0% from 2.530
million to 2.632 million units.

Globally, volume
increased in all major markets with the exception of Japan
where Nissan sold 733,000 units, down 3.6%. In North
America (USA and Canada) volume rose 5.3% to 793,000
vehicles despite a U.S. market slowdown in the second half.
Sales in Europe increased 3.5% to 533,000 units from last
year. Sales in other global markets totaled 573,000 units,
up 14.1%, including a 28.3% increase in Mexico and strong
performance in Thailand and Singapore.

Net
salesConsolidated net sales came to 6,090 billion yen
(US$49.1 billion, Euro 55.9 billion), up 1.9% from last
year. On a consistent basis, changes in accounting methods
and the scope of consolidation accounted for a net 0.5%
increase. Other primary factors of the increase include the
net impact of volumes, mix and prices for a total of 4.7%,
offsetting a negative impact of foreign exchange variations
of 3.3%.

Operating incomeNissan’s full year
consolidated operating profit improved from 82.6 billion yen
to 290.3 billion yen (US$2.3 billion, Euro 2.7 billion),
more than tripling last year’s performance and delivering an
operating margin of 4.75% compared to 1.4% last year.

Nissan reduced purchasing costs by 11% with the rapid
implementation of NRP and close work with suppliers. In all
functions and regions, the company surpassed its cost
reduction commitments.

Despite a weakening yen in the last
quarter, foreign exchange rates generated a significant
negative impact to operating profits of 83.6 billion yen
(US$674.2 million, Euro 767.0 million). While the yen was
stronger on average for the year against all currencies, the
negative impact included 63.1 billion yen (US$508.9 million,
Euro 578.9 million) from European currencies and 9.4 billion
yen (US$75.8 million, Euro 86.2 million) from the U.S.
dollar.

Income
before taxesNet income before taxes came to 289.7
billion yen (US$2.3 billion, Euro 2.7 billion). Nissan
posted net extraordinary profits of 7.4 billion yen (US$59.7
million, Euro 67.9 million) and no further charges for
restructuring were taken in fiscal year 2000.

Minority
interest represented a charge of 21.1 billion yen (US$170.2
million, Euro 193.6 million) as a result of the improved
profits of fully consolidated companies not fully owned by
Nissan.

Net incomeConsolidated net income after tax
totaled 331.1 billion yen (US$2.7 billion, Euro 3.0 billion)
a 1.01 trillion yen improvement compared to a loss of 684.4
billion yen for fiscal year 1999. This is, by far, the best
result in the company.

Consolidated
shareholder's equity as of March 31, 2001 came to 957.9
billion yen (US$7.7 billion, Euro 8.8 billion), an increase
of 394.1 billion compared to 563.8 billion yen as of March
31, 2000, after re-classification of translation adjustment
to equity allowing Nissan to propose a 7-yen per share
dividend. Net automotive debt/equity ratio came to 1, a
substantial improvement from 2.4 in 1999 and the lowest
ratio since 1989.

OutlookNissan issued the
following outlook for the fiscal year ending March 31, 2002
including risks and opportunities.

Risks for the year
include the threat of a further slowdown in the worldwide
auto industry and the potential for increased incentives.

Opportunities include potentially more favorable foreign
exchange rates than forecast. However, the biggest
opportunity for the year remains in the strong
implementation of the NRP.

Based on this outlook Nissan
filed with the Tokyo Stock Exchange a forecast for fiscal
year ending March 31, 2002 with consolidated net sales of
6,300 billion yen, operating profit of 350 billion yen,
ordinary profit of 290 billion yen and a net profit of 330
billion yen. The company also indicated that consolidated
net automotive indebtedness should come to less than 850
billion yen by the end of the period.

Note: Amounts
expressed in US$ and Euro in this press release have been
translated for convenience only at 124 yen = 1 US$ and 109
yen = 1 Euro, the approximate rate of exchange on March 31,
2001.

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